KATHMANDU, Dec 30: Asian Development Bank (ADB) is providing a loan amount worth Rs 18.25 billion (156 million US dollar) for upgrading the electricity grid system in Nepal.

Shreekrishna Nepal, Joint Secretary of the Ministry of Finance (MoF), and Rudi Louis Hendrikus Van Dael, Officer-in-charge, Nepal Resident Mission of ADB, signed an agreement to this effect on Wednesday, reads a press release issued by the MoF.

The international lending institution is providing funds to support the Electricity Grid Modernization Project to be implemented by Nepal Electricity Authority. Of the estimated total costs of Rs 22.81 billion, the government and the power utility will jointly invest the remaining Rs 4.56 billion of the project.

The project has targeted to improve electricity transmission and distribution systems and reduce power leakages.